Onsite Seminar

Finance

Financial Analysis With Negotiation Applications

  1. Introduction
    1. Why we review a supplier's statement
    2. Implications for Negotiations

  2. Foundations for Negotiations
    1. Preparing the Negotiations Checklist
      1. Needs Assessment
      2. Creating a LOB
      3. Strategies to Employ
      4. Techniques to Apply
      5. Environment
      6. Warranty
      7. Service Criteria
    2. Cost and Price Implications

  3. Different Types of Financial Statements
    1. Income Statements
    2. Balance Statements
    3. Profit and Loss Statements
    4. Annual Reports
    5. Others

  4. Different Tools for Financial Assessment
    1. Comparative Analysis
      1. Horizontal Analysis
      2. Vertical Analysis
    2. Common Size Statements
    3. Ratio Analysis
    4. Special Purpose Examinations

  5. Financial Measurements and Controls
    1. Liquidity Measures
      1. Working Capital
      2. Current Ratios
      3. Quick Ratios
    2. Funds Management Ratios
      1. Receivables to Sales
      2. Average Collection Period
      3. Average Accounts Payable Period
      4. Inventory Turnover
      5. Average Days in Inventory
      6. Fixed Asset Turnover
    3. Profitability Measures
      1. Profit Margin
      2. Gross Profit Margin
      3. Return on Equity
    4. Long-Term Financial Strength
      1. Debt to Equity
      2. Times Interest Earned

  6. Risk Analysis
    1. What a buyer should consider
    2. What a buyer may recommend
    3. Risk Impacts and Costs
    4. Risk Mitigation in Negotiations

  7. Creating a Negotiation Strategy
    1. Creating a Directional Mapping
    2. Connecting to the Organizations Strategic Plan

  8. Using the Information from the Analysis
    1. Long-Term Considerations
    2. Short-Term Aspects

  9. Bankruptcies and Foreclosures
    1. Employing an Altman Z-Score Analysis
      1. Applications of Identifying Financially a Trend Toward Bankruptcy
      2. Sample Z-Score Evaluation of a Vendor
    2. Chapter Seven
    3. Chapter Eleven
    4. Chapter Thirteen
    5. Foreclosures and a Buyers Rights

  10. Summary
Who Should Attend

Purchasing professionals who want to learn about the relationship between finance and procurement and master and/or revisit the advanced concepts of the financial side of the purchasing/procurement process and how that process impacts negotiations with suppliers.